Councillors have approved plans to redevelop the Ram Brewery in Wandsworth Town which would create 661 new homes and more than 500 permanent jobs.

Around 266 construction jobs would also be generated while the derelict site is being brought back into use. The brewery, which was a major local employer, stopped wholesale production several years ago.

The approved plans include a 36-storey residential tower, as well as more than 10,683 square metres of commercial space including new shops, cafes, bars and restaurants.

The site's historic buildings will be restored and brought into public use as a new micro-brewery and brewing museum.

The banks of the River Wandle would be opened up and a network of public squares and footpaths would run through the site and around the heritage buildings. Approximately 1.2 hectares of new public open space will be created.

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The developers will pay around £16.5m in community infrastructure levy (CIL) which could go towards a redesign of the Wandsworth one-way-system.

This heavily congested gyratory cuts the town centre in two and blights the high street with four lanes of traffic. The council is working with TfL to develop a new road system which would rechannel through traffic and reconnect both side of the town.

Ten per cent of the new homes would be affordable units with priority going to existing Wandsworth residents. If the value of the private accommodation rises the developer will provide a further £1.2 payment towards building more affordable housing in the local area.

Nick Cuff, Wandsworth Council's planning chairman, said: "The brewery site forms a gaping hole in the very centre of Wandsworth Town, surrounded by walls, locked gates and derelict buildings. This development would open it up as a new pedestrian quarter complete with riverside walks, public square and fantastic heritage attractions like a museum and micro-brewery. The new walking routes it offers would really help to join up the town centre.

"This project also comes with a £16m infrastructure payment which we want to channel into a redesign of the gyratory. Removing through traffic from the high street would be another major lift for Wandsworth Town and trigger another wave of new investment. The Mayor and Transport for London can see the benefits and we are working together to try and make it happen."

(CD)